Effect of Leadership Style on Employee Performance in non-profit Organization: the case of CARE Ethiopia in Dire Dawa

Leadership style is important for improving the performance of organizations. The main objective of this study is to examine the effect of different leadership styles (transactional, transformational, and laissez-faire) on employees’ performance in Dire Dawa, the Case of CARE Ethiopia. To accomplish the goals of this research, the study uses both an explanatory and a descriptive research design. The study uses quantitative research approaches. The data collected from respondents using a census technique is 199 out of 210. The data was collected from primary sources through a questionnaire and analyzed using inferential statistics, correlational analysis, and regression analysis by the Statistical Package for Social Sciences (SPSS) 26 version of data analysis. The result of the study confirmed that there was statistically significant positive relationship between transformational leadership and transactional leadership style with employee’s performance, and there is no statistically significant relationship between laissez-fair leadership style and employee performance. Based on the findings of the study, it was recommended that the leadership styles employed by CARE be transactional and transformational so as to improve the performance of its employees.